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Fujian Jinhua Integrated Circuit Banned From Inporting US Equipment

Jinhua has been banned from importing the US equipment needed to make memory chips and stands accused of stealing memory technology from Micron, who itself was accused by a Chinese court of stealing technology from the Chinese which it itself had developed. The theft of IP and copyrighted material has been estimated at between 200 and 600 billion a year by the Chinese. When you figure a multiplier effect of IP on business is between seven amd thirty, this is a staggering amount of business that has been hurt. I hope both sides as the world's leading economies can come together and develop a fair and transparent world wide IP laws and international court/enforcement arm that is truly international and not beholding to any single country. If countries could actually learn to work together, all progress would speed up dramatically. Sadly this is but a dream with the world leadership we have now. They can't get it through their heads that cooperation is far, far better than conflict and could speed up progress and living standards for everyone while improving the environment. With more intelligent people everywhere and technological tools and communications of all types, more and faster progress is possible now than ever before by several factors. Some politicians just don't know how to construct a win/win game. Dictatorships will never advance as far and broadly as a free society.

UPDATE: This has already had an almost immediate effect on Micron stock which suffered an almost 50% drop from the damage inflicted and has risen 4% so far today. Unfair competition and IP theft does do severe damage and could do the same to our entire economy and others if not stopped. So far China has refused even the slightest overtures, with no sign of stopping such behavior, for in the future they need protection as much as anyone else as I have heard from people with in person and direct experience they steal from each other just as much, discouraging home grown innovation.

boring 18, thanks for the link to the excellent article. Although I'm familiar with most of it and have written on many aspects, it's excellent in facts and time lines. The Chinese declared a trade war many years ago and escalated that trade war, covert and overt, under the Obama administration that did little or nothing. The Chinese have been stealing from everyone including the EU and Asian neighbors on a massive scale for years. TSM has sued them in both Alameda and Santa Clara county courts and won. I hope the Chinese stop their bad behavior and truly become responsible members of the international community. I think the severity of penalties should be increased and made very punitive to the point required to make them stop. Making theft ever more expensive seems to be the only thing that might stop them. If not,outright seizures will have to be the next step. If it takes seizing an entire product for a violation of part of it, this, sadly might be the only way to bring them to the table. China has firmly by its actions declared a trade and commercial war and I hope it can be brought to a peaceful end for the benefit of all. Remember in any war, the first casualty is the truth and this is literally an IP war is literally a new and very dangerous type of war that does severe damage by holding back progress that is desperately needed in numerous areas to solve severe problems and open numerous very beneficial opportunities.

My wish is for the intelligent and powerful to exercise their talents to make this happen if the politicians won't.

I hope the Chinese stop their bad behavior and truly become responsible members of the international community.

Who is to blame ? China tried to develop tech sector via legitimate way(acquisition, buy tech from the West) just like Japan/Korea/Taiwan did, but that path was blocked by the US. In other words the US forced China to go the other way.

America can choose to have calm mind set and sell IP to China to make a fortune then use the money to develop more advanced stuff(the Israel model), or choose to act like paranoid bunches who are so scared of China's development and eventually lose everything for nothing. Fear of competition was never a good sign (corporation or nation) .

Afraid of a company that only has some old tech and zero market presence(Jinhua) will rival one of the top dog in the game (Micron) only shows that the US lacks confidence.

tonyget, you are totally wrong. The Chinese empire has led the world several times having developed steel around 200 BC, when the Romans had only bronze and iron. The history of China and technology has shown they have led the world a few times and they are on their fourth rise as an empire. Valuing freedom of thought is key and an authoritarian government creates an environment adverse to this. Valuing people of both sexes, colors and cultures is also key and the US is a true melting pot, with its flaws, but far better than most, including China. Also China has had a more severe concentration of wealth problem than most, that ends up stifling innovation. Theft and misappropriation of IP will only isolate China from the rest of the world, while I favor all countries collaborating on projects. I know from my contacts, some are Chinese, the theft problem even discourages home grown innovation for who is going to develop technology is someone just down the way locally is going to steal it or claim it is theirs. This is exactly why I have been advocating in these pages for a world wide, transparent, fair and open market for IP similar to the US financial markets. Micron has facilities the world over, including China, go to the their site and look it up. China is still immature and has a way to go in respecting rights of all types and until they advance in this direction they will have problems with not only the world, but their own population. I could carry an anti Trump sign, publish disparaging remarks, and shout anti Trump pronouncements in any city and not fear for my life and freedom, but not if I did the same for Xi in China. Freedom is one of the most important keys to progress, I suggest you study the US Constitution and Bill of Rights, I carry a copy with me and consider it the greatest document written by man. Pocket copies are available for one dollar. What would happen to you if you started distributing them in China?

These are the latest criminal charges that have been filed against the Chinese and there blatant theft of technology with a worth of over 8 billion dollars. China has gone full on criminal economic warfare against the US and the rest of the world.

If those named individuals set foot in countries that have extradition agreement with US, they will be sent to US.
UMC and Fujian Jinhua will do their best to throw those individual under the bus.
Yes, those two companies will have to have pay some hefty fine.

In the meantime, UMC customers (foundry or design services) should seriously question if UMC is a partner honest enough to be trusted with their most valuable company secrets.
Shame on UMC. Shame on them!

The Chinese leadership needs to realize semi/nanotech/platform world we live is has made it possible to have 24/7 transparency real time and the days of blatant theft will encourage a legal industry that will tie them in knots and I hope the punitive damages are staggering as is their purpose to discourage bad behavior in the future. Chinese leadership has to stop encouraging this bad behavior of stealing from everyone as they have been doing, it's not only the US, but the entire world. Their economic war is as bad as their IP war, in that they get countries deep in debt with projects they can't afford to get the upper hand. How many of these projects are handled is to benefit China and not the host country as has been written in the Economist. China is now a modern empire in economics, technology and military and I hope they get the maturity that power of this type requires.

It's pretty obvious that IP theft is nothing more than an excuse . If not ,then why the US got a problem with China's legitimate actives is well? Such as China invests in the US, the "MIC 2025" plan, etc.